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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in CNO Financial Group, Inc. (NYSE:CNO).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
CNO Financial Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when Executive VP and Chief Operations & Technology Officer Bruce Baude sold US$732k worth of shares at a price of US$22.17 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$17.07. So it may not shed much light on insider confidence at current levels.
All up, insiders sold more shares in CNO Financial Group than they bought, over the last year. The average sell price was around US$20.89. Insider selling doesn’t make us excited to buy. But the selling was at much higher prices than the current share price (US$17.07), so it probably doesn’t tell us a lot about the value on offer today. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at CNO Financial Group Have Bought Stock Recently
We saw some CNO Financial Group insider buying shares in the last three months. Director Stephen David purchased US$42k worth of shares in that period. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that CNO Financial Group insiders own 1.1% of the company, worth about US$30m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At CNO Financial Group Tell Us?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. Our analysis of CNO Financial Group insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. Of course, the future is what matters most. So if you are interested in CNO Financial Group, you should check out this free report on analyst forecasts for the company.
But note: CNO Financial Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.